00000nam 2200000zi 4500 9.886402 CaOODSP 20221107171416 m o d f cr cn||||||||| 200427t20202020onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre a-is--- y1y1 FB3-5/2020-12E-PDF Bonomo, Marco, author. Multi-product pricing : theory and evidence from large retailers in Israel / by Marco Bonomo, Carlos Carvalho, Oleksiy Kryvtsov, Sigal Ribon and Rodolfo Rigato. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (iv, 58 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-12 "Last updated: April 7, 2020." Includes bibliographical references (pages 36-39). "Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms. To guide new theory, we study a unique dataset with comprehensive coverage of daily prices in large multi-product food retailers in Israel. We find that a typical retail store synchronizes its regular price changes around occasional "peak" days when, once or twice a month, it reprices around 10% of its products. To assess the implications of partial price synchronization for inflation dynamics, we develop a new price-setting model in which a firm sells a continuum of products and faces economies of scope in price adjustment. The model generates the partial synchronization pattern with peaks of re-pricing activity observed in the data. We show analytically and numerically that synchronization of price changes attenuates the average price response to a monetary shock; however, only high degrees of synchronization can materially strengthen monetary non-neutrality. Hence, the synchronization of price changes observed in the data is consistent with considerable aggregate price flexibility"--Abstract, page iii. Includes abstracts in English and French. Groceries Prices Israel Econometric models. Pricing Econometric models. Inflation (Finance) Econometric models. Transmission mechanism (Monetary policy) Econometric models. Épicerie (Denrées) Prix Israël Modèles économétriques. Prix Fixation Modèles économétriques. Inflation Modèles économétriques. Mécanismes de transmission (Politique monétaire) Modèles économétriques. Bank of Canada. Staff working paper (Bank of Canada) 2020-12. (CaOODSP)9.806221 PDF 1.25 MB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-12-eng.pdf